Microsoft is canceling its Perfect Dark and Everwild games as part of sweeping cuts to its Xbox division. Matt Booty, Xbox president of game content and studios, revealed that Microsoft will be closing The Initiative, the studio behind Perfect Dark, in an internal memo to Xbox employees today.

Speaking on an accompanying earnings call, as reported by Game Developer, Microsoft CEO Satya Nadella said that Xbox Game Pass’s annual revenue totaled just under $5 billion, with 500 million active users, and “nearly” 40 games in development. He added, “We surpassed over 500 million hours of gameplay streamed via the cloud this year.”

Xbox Game Pass records almost $5 billion in annual revenue. Microsoft reports better-than-expected fourth-quarter earnings despite a bunch of layoffs in recent months. The company also revealed that it’s building a bunch of comprehensive AI products and tech stack at a massive scale.

Microsoft reported its latest 2025 quarterly earnings results Wednesday. The tech company's gaming-specific sales reached $5.5 billion for the three-month period which ran April 1-June 30, up 10% from the $5 billion in the comparable 2024 quarter.

Game Pass made Microsoft almost $5bn in annual revenue last year, proving the company is in a healthy state despite last month's shock layoffs.

X box Game Pass revenue reached a new record for Xbox over the last year, achieving "nearly $5 billion" in revenue for the first time. This comes from the company's Q4 and full-year earnings results,

Microsoft’s Q4 financials are out, and Xbox improved 13% year over year in the ever-important content and services revenue. Xbox Financials & Game Pass 5 Billion The financials for Microsoft have hit,